Real estate investors are tightening their grip on the housing market, with new data showing they now account for nearly one in three home purchases across the United States.
Investors have been acquiring about 85,000 homes per month so far in 2025, a pace nearly identical to last year’s monthly average of 84,000, although well below the 2022 peak of 120,000 monthly purchases. However, a new report from Cotality suggests a return to that peak is unlikely without similar price appreciation that was seen then.
The stats reveal that the investor share of the market remains elevated because traditional buyers have pulled back, while those buying for investment frequently have different risk tolerance to those buying mainly as their own home.
“Investors expanded their market presence significantly in 2025, building on historically high levels,” said Thom Malone, principal economist at Cotality. “This demonstrates their resilience in a high-price, high-rate environment. As these adverse conditions are expected to persist, investors are well positioned to meet rental demand. Their tendency to buy with all cash means high interest rates are less of a deterrent. Plus, current high prices can be offset by strong rental returns.”
The composition of investor activity is also changing with medium-sized investors (those with 10 to 99 properties) having increased their share from 6% in June 2024 to 10% in June 2025, while small investors (with fewer than 10 homes) still make up the largest share at 14%. Large investors (101 to 1,000 properties) account for 3% and mega-investors (1,000+ homes) make up just 2%.
Cotality notes that medium-sized investors are particularly well-positioned and are more likely than small investors to pay cash, but they remain more focused on residential real estate than mega-investors, creating a distinct role in today’s market.
However, investor activity is not evenly distributed nationwide. The metros with the heaviest concentrations include Dallas, Houston, Atlanta, Phoenix, and Los Angeles, where investors are buying up significant portions of available housing.
Cotality’s data suggests seasonal shifts in the share of investor purchases with a dip in summer as owner-occupiers re-enter the market followed by an increase in winter as these buyers pull back.
The report notes that assuming there are no major changes to interest rates or macroeconomic conditions, the investor share of home purchases is likely to remain in a 25-30% range in the foreseeable future.
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